Tag: Economic fundamentals

Taxcast: Financial Secrecy Index: Who Are the World’s Worst Offenders?

Yves here. Hope you enjoy this month’s Taxcast! If you’d like to listen to it offline, you can download it here. Originally published at Tax Justice Network In this special extended Taxcast, Naomi Fowler takes you on a whistle-stop guided tour on an express train around the world with some of the Tax Justice Network […]

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HSBC Announces Mass Job Cuts, Huge Write-Down, Asset Sales, Halt of Share Buybacks. Warns of Coronavirus Impact on Credit Losses & Revenues in China & Hong Kong

Yves here. HSBC is wobbly due significantly to real economy hits. Will we see more banks fall prey to similar shocks? By Nick Corbishley.. Originally published at Wolf Street Global banking behemoth HSBC’s net profit slumped 53% in 2019, to $5.97 billion, after the lender announced a $7.3 billion write-off to reflect weakened conditions in global […]

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Breakdown or Breakthrough? Degrowth and the Great Transition

Yves here. While most people respond better to positive messaging, I find “degrowth” to be far too sanitized a term for the sort of consumption cutbacks we all have to make to have any hope of averting the worst climate and species loss outcomes. A big problem is most of us depend economically on infrastructure […]

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Most Long-Term Growth Forecasts by Economics Researchers Biased Upwards

Lambert here: Now they tell us. By Masayuki Morikawa, Vice President, Research Institute of Economy, Trade and Industry (RIETI). Originally published at VoxEU. Although long-term macroeconomic forecasts substantially affect the sustainability of government debt and the social security system, they cannot avoid significant uncertainty. This column assesses whether academic researchers in economics make accurate long-term […]

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400 Million Locked Down in China To Fight Coronavirus

Yves here. One consideration that slightly ameliorates the downside scenario in this post is that China really has no other way of contending with a serious contagion like the coronavirus, whether it rises to a pandemic level or not, than quarantine and other methods to enforce greatly increased social distance. China has a woefully tiny […]

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Sanders Called JPMorgan’s CEO America’s ‘Biggest Corporate Socialist’ – Here’s Why He Has a Point

Yves here. I wish Sanders would use even more pointed messaging, like “socialism for the rich”. But for those who complain about Sanders not going after important targets, this slap back at Dimon, who criticized Sanders and socialism at Davos, shows that the Vermont Senator is landing punches, but choosing his fights carefully. And banks […]

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Rentier Capitalism: Great for Stocks, Lousy for Growth

As fans of Michael Hudson and/or students of economic history know, one of the strongly-held policy views of classic economists was that constraining rentier activities was essential to promoting growth. They understood that rentier-ism could often produce more profits than investment in productive activities. For instance, they favored usury ceilings because lenders would otherwise lend […]

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Coronavirus: Australia Faces Calamity

Yves here. This post from our colleagues at MacroBusiness looks at the economic impact of the coronavirus, first on China, then the knock-on effects around the globe. Skeptics have long thought that China’s high levels of private debt and dependence on increasingly not-very to un-productive investment would lead to a retrenchment and potentially even a […]

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Brexit: Warmed Over Chicken

On the one hand, we Americans are hardly ones to talk about empty posturing, usually accompanied with moral indignation and finger-wagging. On the other hand, it isn’t just that the Government’s approach to Brexit has been heavy on theatrics and thin on substance. It’s also that we seem to be back to Groundhog Day mode, […]

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Do Davos Billionaires and Bankers Really Believe Booms and Busts Are Over Because They’ve Trained the Fed?

By Marshall Auerback, a market analyst and commentator. Produced by Economy for All, a project of the Independent Media Institute Can runaway booms descend into busts absent monetary tightening by the world’s central banks? I pose this question in the wake of an extraordinary exchange on January 22 at Davos between Bloomberg editor-at-large Tom Keene […]

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Student Enrollment Dropped 11% Since 2011, Student-Loan Balances Surged 74%. Why?

By Wolf Richter, editor at Wolf Street. Originally published at Wolf Street This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: Enrollment in higher education in the United States has dropped by 11% from the peak in 2011. That’s a drop of 2.2 million students over the span of eight years, […]

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US Loses Nearly 4 Million Jobs to China Since WTO Entry

A newly released study by the Economic Policy Institute reaches a devastating but not surprising conclusion: globalization has screwed American workers. However, putting numbers on how much sustained trade deficits with China translate into lost American jobs, and those numbers turning out to be large, gives free trade cheerleaders a lot less wriggle room. EPI […]

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Secular Stagnation: Demand Is Indeed the Culprit

Yves here. This post describes how much of the economics discipline has settled on a neat, plausible, and wrong explanation of secular stagnation. The only good news is at least pretty much no one buys Larry Summers’ theory. By Servaas Storm, Senior Lecturer of Economics, Delft University of Technology. Originally published at the Institute for New […]

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Michael Hudson on the History of Debt Cancellation, Austerity in Europe, January 2020

Yves here. Another long-form Michael Hudson discussion from Germany of why ancient societies found it in their survival interest to wipe out debt periodically, the resistance to this discovery, and how modern Europe illustrates the dangers of giving creditors the whip hand. Please enjoy this conversation. Rees Jeannotte [00:00:05] Hello and welcome. I’m Rees Jeannotte, […]

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How CEOs, Experts and Philosophers See the World’s Biggest Risks Differently

Yves here. I’m putting up this piece precisely because I find it to be frustratingly superficial and hope readers will come up with additional observations and ideas. Specifically, it skips over the various reasons why CEOs are so blinkered in their view of risks that they don’t put climate change at the top of the […]

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Coronavirus: Not Looking Good

The aggressive and increasingly stringent measures taken in China to contain the “novel coronavirus” sure look like the officialdom is worried, if not panicked about the disease. Although we and they are suffering from bad data (for instance, shortages of tests and even in places personnel to confirm that suspected cases are the coronavirus and […]

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Desperation Hidden in Plain Sight: Coastal Edition

We’ve regularly featured “How Is Your Economy?” queries to readers to get a more granular view of how different regions and industries in the US (and selectively abroad) are faring. A short thread in Links yesterday has me wondering if I’ve been asking the wrong question all these years. Asking about overall conditions can direct […]

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Another Great Depression or Tax Justice and Transparency? The Tax Justice Network January 2020 Podcast

Yver here. Lots of meaty topics this time at the TaxCast….like whether Brexit will usher in a buccaneer tax/finance regime, is depression just around the corner, and the looting of Angola. By Naomi Fowler. Originally published at Tax Justice Network The Taxcast kicks off the new decade with: the French strikes – tax justice and […]

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STATEMENT: House Budget Committee, “Reexamining the economic costs of debt”, Nov 20, 2019

By Randy Wray. Originally published at New Economic Perspectives. By L. Randall Wray This blog is based on the testimony I provided to the US House of Representatives. My written statement will be published in the Congressional Record (a version is also at the Levy Economics Institute: http://www.levyinstitute.org/publications/statement-of-senior-scholar-l-randall-wray-to-the-house-budget-committee. The full statement was co-authored with Yeva […]

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